While the overall parts market is depressed due to the sluggish smartphone industry, the printed circuit board(PCB) is booming. Globally, demand for semiconductor PCB has risen, and it is also benefiting from the low Yen and high exchange rates. The drop in the price of key raw materials needed for substrate production, such as gold, silver, and copper, also helped.
According to the industry on the 12th, the South Korean semiconductor substrate industry is expected to generate the highest sales this year which focuses on high value-added substrates such as flip chip-ball grid array (FC-BGA). This is because demand for high value-added semiconductor PCB board continued.
The low Yen is also contributing to the good performance of the PCB industry. Most of the large equipment required to produce semiconductor PCB board is made in Japan. As the value of the Yen against the dollar fell to its lowest in last 24 years, the PCB industry was able to purchase Japanese equipment at a cheaper price.
Most of the South Korean semiconductor PCB industry is exporting, so they are also benefiting from the high exchange rate. Another benefit for the PCB industry is that the prices of gold, silver, and copper, which are industrial metals required for PCB production, are getting cheaper.
The PCB industry made large-scale facility investments and is counting on their business expansion with the booming.
DAEDUCK Electronics' new FC-BGA business started to make profits in earnest. DAEDUCK Electronics is reorganizing their business mainly for high profit substrates while restructuring low profit businesses such as flexible printed circuit board (FPCB) and multi layer board (MLB). DAEDUCK Electronics is expected to make additional investments in FC-BGA in the future.
With their new main products in high value-added businesses, DAEDUCK Electronics is expected to record KRW 1.35 trillion on a consolidated annual basis this year, according to financial district. Operating profit is also expected to exceed KRW 200 billion. Sales of FC-BGA substrate are also expected to exceed KRW 150 billion. DAEDUCK Electronics has been evaluated as having entered the market stably by jumping into the new FC-BGA business.
Korea Circuit is also reorganizing their business centering on high value-added semiconductor PCB. As of the first quarter, the proportion of high density interconnect (HDI) substrate for smartphones in Korea Circuit’s sales is about 60% and other 40% for semiconductor package substrates. Recently, the proportion of semiconductor package substrates is growing significantly. Korea Circuit is strengthening their high value-added substrate business by focusing on communication package substrates.
Korea Circuit is expected to record their best performance this year, recording KRW 1.87 trillion in sales and KRW 157.3 billion in operating profit on a consolidated basis. Interflex, a consolidated company, is also expected to increase the supply of digitizers for foldable phones.
Although SIMMTECH did not enter the FC-BGA substrate business, they are recording excellent results by diversifying their portfolio mainly with high value-added products. They are reducing the proportion of mobile phones, which are shrinking in market size, and reorganizing their business into server and PC. SIMMTECH is also expected to record KRW 1.8 trillion in sales and KRW 381.8 billion in operating profit this year.
By Staff Reporter So-ra Park [email protected]
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